Question

Last year, Justin opened an investment account with $5400. At the end of the year, the amount in the account had increased by 6.5%. How much is this increase in dollars? How much money was in his account at the end of last year?

Answer 1

$351

$5,751

Explanation:

Justin opened an investment account with $5400.

At the end of the year, the amount in the account had increased by 6.5%.

So,

$5,400 - 100%

$x - 6.5%

Write a proportion:

`(5,400)/(x)=(100)/(6.5)`

Cross multiply:

`100x=5,400\cdot 6.5\\ \\x=54\cdot 6.5\\ \\x=\$351`

Justin's increase in dollars is $351.

In his account at the end of the year was

`\$5,400+\$351=\$5,751`

Answer 2

$351 and $5751

Explanation:

Given, Justin opened an investment account with $5400. At the end of the year, 6.5% increased. So, the total increase in the dollar is 5400* 0.065 = 351. The increase in the dollar is $364.

At the end of the year, Justin will have 5400 + 351 = $5,751. So, Justin will have $5,751 at the end of the year in his investment bank account.